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5 e-commerce platforms dominate domestic market

05 February 2021 10:19

JAKARTA - Five digital platform companies, including Shopee, Tokopedia, Lazada, Blibli, and Bukalapak, dominate the Indonesian e-commerce market because they control data and information networks. This was conveyed by Ukay Karyadi, Commissioner of the Business Competition Supervisory Commission (KPPU) in a press release quoted on Friday (5/2).

He conveyed that the findings were based on the results of KPPU's study on the concentration of the domestic e-commerce market. "Business competition in e-commerce is supported by the main factors that are interrelated, namely, control of data and the existence of information networks. Companies that control data will easily form information networks," he said.

Referring to KPPU's study, he said, the main consideration for consumers to choose virtual commerce companies is the customer’s credibility. In addition, consumers consider choosing merchants, namely, price and delivery time. "Consumers consider switching merchants when they get a 10 percent price difference," he said.

He said Indonesia is the largest market in Southeast Asia with a digital economy value of US$ 44 billion in 2020. By 2025, the valuation of the digital economy in Indonesia is predicted to reach US$ 124 billion. "It will remain as the country with the largest digital economy valuation in Southeast Asia," he said. (LK/LM)

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